Statement from Navy Federal Credit Union on CFPB Agreement
VIENNA, VA (November 7, 2024) – Navy Federal Credit Union released the following statement after reaching an agreement with the Consumer Financial Protection Bureau concerning overdraft fees assessed to personal checking accounts. The member-owned, not-for-profit credit union will pay a $15 million fine to the CFPB as part of the agreement.
Navy Federal fully cooperated with the CFPB’s investigation and we will continue to comply with all applicable laws and regulations, just as we always have and as we believe we did here. Nevertheless, this settlement enables us to focus on serving our members and their families. As a member-owned, not-for-profit credit union, we are focused on putting our members first. That means we prioritize doing right by our members and ensuring they have the resources, tools and support they need to build strong financial futures. We look forward to reinforcing this fact to our members every day through our values, policies and world-class customer service. We will continue to support and invest in our members – including the military, Veterans and their families – to help them meet their financial goals.
ADDITIONAL CONTEXT
Overdraft services enable many Navy Federal members to make necessary purchases without going into long-term debt. The credit union’s program provides a lifeline to its members and an alternative to payday lenders. At the same time, Navy Federal works to help members avoid overdrawing their accounts in the first place and has long invested in specific programs designed to help members reduce their chances of incurring overdraft fees. Navy Federal also works to support members if they do overdraw their accounts. Over the past several years, Navy Federal has continued to comply with evolving expectations – including by automatically refunding certain overdraft fees since January 2023.
Because of the credit union’s member-driven mission, members currently earn and save an average of $461 per year by banking with Navy Federal, a cumulative total of more than $4 billion annually, with benefits ranging from higher dividends to reduced interest rates. Alongside its 2025 enhancements, that number will grow to more than $4.5 billion in the coming months.
Navy Federal will continue to refine its processes to help members avoid fees and maximize its member experience. As previously announced, the credit union will be eliminating non-sufficient fund fees for personal checking accounts starting in Q1 of 2025. Members needing more flexibility in their banking experience will continue to have the opportunity to benefit from Navy Federal’s overdraft options without having to turn to more costly options elsewhere. Navy Federal’s overdraft options include its Optional Overdraft Protection Service (“OOPS”), Overdraft Savings Transfer and Checking Lines of Credit.
About Navy Federal Credit Union: Established in 1933 with only 7 members, Navy Federal now has the distinct honor of serving more than 14 million members globally and is the world’s largest credit union. As a member-owned and not-for-profit organization, Navy Federal always puts the financial needs of its members first. Membership is open to all Department of Defense and Coast Guard Active Duty, Veterans, civilian and contractor personnel, and their families. Navy Federal employs a workforce of 24,000 and has a global network of 360 branches. For more information about Navy Federal Credit Union, visit navyfederal.org. Federally insured by NCUA. Equal Opportunity Employer.